WAGE STABILISATION

Otago Daily Times, Issue 27358, 6 April 1950, Page 6

WAGE STABILISATION

Control Of Maximum Rate Abolished

“A REALISTIC VIEW”

PA . WELLINGTON, Apl. 5. “It is the policy of the Government to remove war-time restrictions and controls as quickly as practicable, but nevertheless progressively and in an orderly manner consistent with the best interests of the community,” says a statement issued tonight by the Minister of Labour, Mr Sullivan, on the Economic Stabilisation Regulations gazetted tonight. > “We want to restore to the people a greater measure of economic freedom to to get on with the job of building up the production of the country. Until inflation, with its disruptive pressures, can be effectively checked, it is in the interests of farmers, wage earners and, in fact, every section of the community, that a general policy of stabilisation should be continued,” he said. “It is, however, nearly five years since the cessation of hostilities and the Government believes the time has arrived when the rigid methods appropriate to war-time circumstances should be relaxed to afford greater flexibility and scope for free enterprise to provide incentives that will make for greater effort on the part of the community and thus enable the country to forge ahead on the all-important task of increasing production.

“Increasing incomes generally without a corresponding increase in production of goods or provision of services is inflationary and not only benefits nobody, but is positively harmful to the whole community, particularly those in the lower income groups. On the other hand, those who do add to the flow of wealth are justly entitled to an increased share of it. and accordingly should have greater incomes to spend. “In furtherance of these principles and ideas, steps have been taken to redraw in simplified form the Economic Stabilisation Regulations governing the rates of remunerations. Fixation and control of maximum rates by a court, wage commissioners, or otherwise has been abolished. “ This will restore freedom to give and receive greater rewards where they are earned. Moreover, and more especially, it will remove the injustice that local body employees and others of that type have been suffering as a result of scrupulous observance of the regulations while other sections of the community—employers and employees alike—have, in the vast majority of cases, conveniently

ignored them. “It will still be incumbent on the Court of Arbitration to have regard to the general purpose of the Economic Stabilisation Regulations, but with this qualification: The court will revert to its normal function in fixing minimum award rates under normal procedures. Although the court will no longer be specifically bound to maintain a proper relationship in wage rates, this being, essentially a necessity of war-time control, nevertheless the court will be fully entitled to take this relationship into account, and there is nothing in the regulations to limit the court’s powers in this respect. “Similarly, although provisions for making standard wage pronouncements and adjusting awards during their currency are also eliminated, nevertheless the inherent power which, prior to the stabilisation regulations, the court possessed and from time to time exercised to make standard wage pronouncements for its own purposes still remains. Furthermore, to protect workers in the event of any sudden substantial increase in the cost of living or other general unusual changed circumstances, the power of the court to make general orders has been retained.

“The greater freedom and flexibility inherent in these alterations is, we believe, necessary for progress, but I would reiterate that stability is also very important. With freedom goes responsibility, and I confidently appeal to employers and workers to get together in devising ways of associating any increased remuneration with greater .production and any increased production with higher remuneration. “To sum up, we are providing a further instalment of the change-over from war-time to peace conditions and are incidentally taking a realistic view of the position by making lawful what has been an almost general unlawful practice of exceeding award rates in defiance of the regulations, or, in other words, carrying on the equivalent of a black market in wages/’